Introduction to Organizational Behaviour - Part 3

Summary

Dr. M. P. Ganesh's lecture focuses on the fundamentals of Organizational Behavior (OB), including the definition of OB, its assumptions, and its importance in understanding human behavior in organizations. He highlights the influence of both individuals and larger social groups on each other and discusses key applications of OB in areas like employee behavior, performance management, and human resource practices. He emphasizes the importance of OB theories, such as Maslow's Hierarchy of Needs, in addressing workplace challenges and improving organizational effectiveness. The lecture concludes with a prompt to explore the historical evolution of OB, especially during the World Wars.

Takeaways

• 🏫 Organizational Behavior (OB) is a discipline that studies organizations, behavior, and how they interact.
• 🌐 Organizational culture consists of social norms and unwritten rules that influence individual behavior within a group.
• 🔁 There is a mutual influence between individuals and the larger social group, with each adapting to the other over time.
• 🌟 Understanding the interplay between top-down and bottom-up influences is crucial for grasping human behavior.
• 🎓 Studying OB is beneficial for students and professionals alike, as it helps in understanding group dynamics and improving interpersonal relations.
• 🚀 OB plays a significant role in Human Resource Management (HRM), aiding in selection, training, performance evaluation, and welfare of employees.
• 💼 OB theories, such as Maslow's Hierarchy of Needs, can predict employee behavior and guide interventions to improve retention.
• 🔄 Job rotation is an example of an intervention that can be used to address employee stagnation and the desire for growth.
• 📈 OB helps in identifying biases in the selection process and provides tools to overcome them for better recruitment decisions.
• 🤝 OB contributes to performance management by offering criteria for evaluating employee performance beyond just tangible outputs.
• 🌱 OB can improve the quality of work life, leading to better long-term employee performance and organizational effectiveness.

Q & A

What is the main focus of the lecture series on Organizational Behavior?

The lecture series focuses on understanding organizational behavior, which includes defining what an organization is, what behavior entails, and how these interact to form organizational behavior.

What was the homework question posed by Dr. M. P. Ganesh in the previous lecture?

The homework question was to determine whether larger social groups strongly influence individual behavior or if individuals strongly influence larger social groups like organizations.

Why does Dr. Ganesh believe that both the influence of larger social groups on individuals and individuals on larger social groups are correct?

Dr. Ganesh explains that both influences are correct because individuals adapt to the social norms of an organization, which is a reflection of the larger social group's culture, while also contributing to the evolution of that culture over time through their behaviors.

What is an example of organizational culture mentioned in the script?

An example of organizational culture mentioned is the practice in India of addressing teachers or bosses with honorifics like 'sir' or 'ma'am', which reflects the social norm of addressing authority figures with respect.

How does the script illustrate the concept of social norms?

The script illustrates social norms as unwritten rules that newcomers to an organization must understand and adapt to, such as the way people address their supervisors or teachers.

What is the significance of understanding the interplay between larger social groups and individuals in organizational behavior?

Understanding this interplay is significant because it helps to comprehend the complexities of human behavior, which cannot be generalized. It highlights the importance of considering both top-down and bottom-up influences and their interdependence.

Why is studying organizational behavior important even for students who are not practitioners?

Studying organizational behavior is important for students because it helps them understand the dynamics within their educational institutions, which are also organizations, and can aid in building relationships and trust within groups.

What is one of the challenges faced by large manufacturing organizations mentioned in the script?

One of the challenges mentioned is attrition at the middle management level, especially after employees have spent 5 to 7 years with the organization, leading to a loss of skilled workforce and established networks.

How does the Maslow's Hierarchy of needs theory relate to employee retention in organizations?

The theory suggests that employees at the middle management level with 5 to 7 years of experience may seek recognition and growth opportunities, which can be addressed to prevent attrition. Organizations can use this understanding to plan interventions like job rotation to provide new challenges and learning opportunities.

What role does organizational behavior play in human resource management?

Organizational behavior contributes significantly to human resource management by aiding in selection, training, performance evaluation, motivation, and employee welfare, helping to enhance the quality of work life and overall organizational effectiveness.

What is the difference between 'workplace' and 'workspace' as discussed in the script?

The 'workplace' refers to the physical location and environment where work is done, including the people and culture of the organization. 'Workspace', on the other hand, refers to the broader area of work influence, including how work impacts and is influenced by an individual's personal life and work-life balance.

Outlines

00:00

📘 Introduction to Organizational Behavior and Recap

In this paragraph, Dr. Ganesh introduces the lecture series on Organizational Behavior and recaps the previous sessions. The key focus is on defining the concepts of 'organization,' 'behavior,' and 'organizational behavior,' and understanding the basic assumptions and levels of analysis in organizational behavior. The paragraph ends by posing a reflective question on whether individual behavior influences larger social groups or vice versa, and explains how both dynamics are valid, using examples of organizational culture.

05:03

🤔 Interdependence of Social Groups and Individuals

This paragraph emphasizes the importance of understanding the mutual influence between individuals and larger social groups. It explains how behaviors in organizations are shaped by both top-down (social group influence) and bottom-up (individual influence) processes. Dr. Ganesh highlights the complexity of human behavior, urging students to think critically about the context and nuances of behavior, not just in organizations but also in broader social settings.

10:04

🎓 Relevance of Organizational Behavior for Students

Dr. Ganesh explains why understanding organizational behavior is important for students, even if they are not yet working professionals. Organizational behavior principles can help students navigate group dynamics within their academic institutions, build trust, and develop better relationships. He stresses the practical application of organizational behavior concepts, particularly in understanding human behavior in various contexts, such as middle-management attrition in organizations.

15:09

💼 Career Growth and Maslow's Hierarchy of Needs

In this paragraph, Dr. Ganesh discusses the concept of career stagnation, particularly in middle-level management, and explains how Maslow’s Hierarchy of Needs can help predict and address employee dissatisfaction. He highlights that middle managers, after 5-7 years of service, may not be solely motivated by money but also by recognition and opportunities for growth. He advocates for interventions like job rotation to keep employees engaged, rather than merely offering promotions or pay raises.

20:16

👥 Application of Maslow’s Theory in Employee Retention

This section further elaborates on how theories like Maslow’s Hierarchy of Needs can be used to predict employee behavior and plan interventions. Dr. Ganesh provides examples of how understanding employee motivations can help organizations address issues such as job stagnation by offering alternatives like job rotation. He emphasizes that applying organizational behavior concepts can lead to more effective and practical solutions for employee retention.

👩‍💼 Organizational Behavior in HR Management

Here, Dr. Ganesh discusses how organizational behavior contributes to human resource management, particularly in recruitment and selection processes. He explains that beyond skills, personality traits like extroversion and negotiation ability are crucial for certain roles, such as marketing. He also mentions biases in selection, like stereotyping and the halo effect, and stresses the importance of overcoming these biases using organizational behavior principles.

🎯 Performance Evaluation and Employee Welfare

This paragraph explores how organizational behavior can enhance performance evaluation and management in the workplace. Dr. Ganesh discusses the challenges of measuring both tangible and intangible aspects of performance, such as leadership and willingness to learn, as well as biases like the halo effect that can influence evaluations. He also introduces the role of organizational behavior in addressing employee welfare and managing stress, particularly in high-pressure service jobs like IT.

🌟 Enhancing Work-Life Balance and Organizational Commitment

Dr. Ganesh explains how organizational behavior can improve work-life balance and overall quality of work life. He differentiates between 'workplace' and 'workspace,' highlighting how stress from work can impact personal life and vice versa. Understanding these dynamics allows managers to create positive interventions that enhance employee performance, commitment, and loyalty, ultimately leading to long-term organizational success.

🏆 Long-Term Organizational Success and Employee Commitment

This paragraph concludes with the importance of fostering committed, loyal, and happy employees for long-term organizational effectiveness. Dr. Ganesh emphasizes that organizations with such workforces tend to perform better over time. The paragraph also sets the stage for the next chapter, which will explore the history of organizational behavior and its evolution, particularly through the lens of industrial psychology during the World Wars.

Keywords

💡Organizational Behavior

Organizational Behavior (OB) is the study of how individuals and groups behave within an organizational context. It encompasses the attitudes, behaviors, and perceptions of people at work. In the video, Dr. M. P. Ganesh emphasizes the importance of understanding OB to predict and manage employee behavior, which is crucial for organizational success.

💡Organizational Culture

Organizational culture refers to the shared values, beliefs, norms, and practices that characterize a particular organization. Dr. Ganesh uses the example of addressing supervisors with honorifics like 'sir' or 'ma'am' in India to illustrate how organizational culture influences individual behavior and vice versa.

💡Social Norms

Social norms are the unwritten rules that govern behavior within a group. In the context of OB, these norms can shape how individuals act within an organization. Dr. Ganesh explains that newcomers to an organization must adapt to these social norms, such as the way they address their superiors.

💡Maslow's Hierarchy of Needs

Maslow's Hierarchy of Needs is a motivational theory that suggests humans are motivated to fulfill basic needs before advancing to higher-level needs. Dr. Ganesh references this theory to explain why employees with 5-7 years of experience might leave an organization due to a lack of career growth opportunities, which aligns with the need for self-actualization.

💡Attrition

Attrition refers to the rate at which employees leave an organization. Dr. Ganesh discusses the challenges of attrition at the middle management level, where experienced employees may quit, causing a loss of tacit knowledge and established connections, which can be costly for the organization.

💡Job Rotation

Job rotation is a human resource management practice where employees are moved between different positions within an organization. Dr. Ganesh suggests job rotation as an intervention to prevent attrition by providing employees with new challenges and learning opportunities, thus addressing their growth needs.

💡Human Resource Management (HRM)

Human Resource Management is the function within an organization that focuses on the recruitment, training, performance evaluation, and welfare of employees. Dr. Ganesh highlights the role of OB in HRM, particularly in selection processes, where understanding personality attributes and biases is crucial.

💡Psychometry

Psychometry is the scientific study of the measurement of mental capacities and personality traits. In the script, Dr. Ganesh mentions psychometry in the context of selection processes, where it helps in assessing whether a candidate's personality and attitude fit the job requirements.

💡Stress Management

Stress management refers to the strategies and techniques used to cope with stress in the workplace. Dr. Ganesh discusses how OB can contribute to stress management, particularly in high-stress industries like IT and hospitality, to prevent burnout and improve employee welfare.

💡Work-Life Balance

Work-life balance is the concept of maintaining a healthy balance between work and personal life. Dr. Ganesh touches on this concept when discussing the influence of work stress on personal life and vice versa, emphasizing the importance of understanding these dynamics for improving employee performance and organizational effectiveness.

💡Employee Welfare

Employee welfare refers to the well-being and satisfaction of employees in the workplace. Dr. Ganesh mentions that OB can significantly contribute to employee welfare, especially in areas like stress management, which can lead to improved performance and organizational commitment.

Highlights

Introduction to Organizational Behavior and its importance in understanding human behavior within organizations.

Organizational culture influences how individuals behave, with examples of addressing supervisors as 'sir' or 'ma'am' in Indian culture.

Both individuals influence larger social groups, and social groups influence individual behavior, highlighting the complex interaction between the two.

The importance of adapting to organizational culture when transitioning between different workplaces or cultural settings.

Understanding human behavior involves acknowledging both macro and micro influences in organizational settings.

Studying Organizational Behavior helps students understand group dynamics, build trust, and apply OB concepts even outside of formal work environments.

Middle management attrition in large manufacturing organizations is a significant challenge, with key reasons linked to career growth and recognition needs.

Maslow's Hierarchy of Needs is applied to predict why employees at different levels may leave, showing how organizational behavior theories can anticipate employee motivations.

Job rotation is a strategy used to address middle-management attrition by offering new challenges and opportunities for growth horizontally when vertical promotions aren’t possible.

Human Resource Management benefits from OB principles, especially in recruitment, where psychological qualities like extroversion or persuasiveness are important for specific roles.

Stereotypes and biases, such as the halo effect, can influence hiring and performance evaluations, emphasizing the need for awareness of these biases in managerial decisions.

Organizational Behavior contributes to employee welfare, especially in managing stress and preventing burnout in high-pressure industries like IT or hospitality.

The significance of work-life balance and understanding the interplay between personal and professional lives, as stresses from one domain can affect the other.

Long-term organizational success is tied to having committed, loyal, and happy employees, not just high performers.

The development of organizational behavior as a discipline was significantly influenced by world wars, particularly in the evolution of industrial psychology.

Transcripts

Hello all, warm welcome to this lecture series on Organizational Behavior. I am Dr. M. P.

Ganesh and this is going to be the 3rd section of our first chapter which is on introduction

to organizational behavior. A quick recap of what happened in the previous two lectures.

So, what we did in the previous two lectures was to define organizational behaviour. So,

in order to understand what is organizational behaviour, we need to explain what is an organization?

What is behavior? and what is organizational behavior? In fact, we spent considerable amount

of time in understanding these three term terms or these three concepts. In the second

lecture we understood or we try to look at what are the basic assumptions of organizational

behaviour as a discipline. And also what are the fundamental ideas which

are basis for organizational behaviour as a discipline. We also looked at the three

levels in which organizational behaviour can be understood or how an individual s behaviour

can be understood at three different levels. In fact, I have given you a homework if you

remember the homework; I asked you to answer me whether the larger social group has an

influence on individual behaviour or individuals influence the larger social group like organizations.

What is your answer? Is it (a) which is larger social group strongly

influence individual behavior? Or is it (b) which is individuals strongly influence larger

social groups like organization? In fact, both are correct ok. I will explain why both

are correct. I will give an example ok. Let us say in your college or in your institution

in your workplace; how will you call your supervisor or your teacher or your boss. Many

times in India we call our teacher or boss as sir or ma'am.

Even if we call them by their first name we will use this, let us say; Ganesh sir or you

know Chitra ma'am and things like that ok. So, why do we call our supervisors or teachers

by a second name, by using sir or ma'am many a times ok. Why because it is part of the

organization culture. So, organizational culture is nothing but

the larger social norm in that particular group. So, social norm means unwritten rule

ok. So, if you are a newcomer to this social group like this particular organization you

need to understand what are the social norms and you will try to adapt to these social

norms. For example, if you are a European student; usually in Europe people will call

their supervisors or teachers by their first name ok.

So, let us say a European or you know someone from a western culture comes to India and

they will find this to be new ok. And they will find it a little bit uncomfortable in

the beginning and slowly they will adapt to this new culture, ok. So, let us say you are

working organization where you call your boss by their first name, but you move to another

organization where everybody calls each other by you know sir, ma'am.

Initially you will take some time, but slowly you will try to adapt or at least initially

you will not resist too much and behave in a way you want to many a times. So, in that

sense larger social group influence the individual behaviour. So, how does individuals behaviour

influence larger social group? Even the same idea of culture, how the unwritten social

norm evolves over a period of time through individual s behavior.

Maybe when the organization was young, the smaller group which existed at that point,

they created this culture ok. And this culture carried over for later points in time for

the organization or sometimes when a new leader comes the leader can also change the culture

of the organization. So, what I am trying to say is both individuals influence larger

social group and larger social groups influence individuals. So, why this understanding is

important? Why do you need to understand this inter dependency

of top down and bottom up influences? Why because if you want to understand human behaviour

you cannot generalize just by saying a plus equal to or 1 plus 1 equal to 2 ok. So, if

you want to define a certain behaviour understand certain behaviour you need to understand both

the influence of larger social group on individuals, individuals influence on larger social groups.

And also how these two things are interdependent on each other; how they intertwine each other;

this, you know macro influencers and micro influencers. So, you have to understand the

complexities involved in understanding human behaviour. In fact, this is what I have been

you know keep on insisting throughout my lectures you know. Looking at things in a critical

manner and trying to understand the context of the particular behavior

So, why study organizational behavior? Not necessarily you know you have to be a practitioner

to apply organizational behavior. Even at this point as a student for you, understanding

organizational behaviour is very important. For the simple reason that the institute or

the college where you study is also an organization ok. You do not need to be a manager to use

or to apply organizational behaviour theories and models.

Even at this level you can understand people around you, you can understand why certain

things influence in a certain way, to understand how groups within the institute work, you

know the group dynamics. you can also use these organizational behaviour concepts to

build trust in your group or in your friendship and things like that. So, even if you are

not working organizational behaviour is going to help you a lot.

Especially if you are a working professional, organizational behaviour has three important

functions; one to understand human behaviour or to understand employee behavior. I will

give a simple example ok; many of these large manufacturing organizations; organizations

which are like very huge which are there for many years, they find a very important challenge

which is attrition at the middle level management. Especially when people who have spent considerable

amount of time 5 to 7 years they quit the organization.

And for the organization it is not a good thing because; these people who have worked

there for significant number of years 5 to 7 years or the middle level management, when

they leave, they you lose a skilled work workforce. You know somebody who has been trained in

the organization for so long and somebody who has established many networks in the organization,

when someone at that particular level at that number of work experience leaves they also

take the connections, the unwritten knowledge this tacit knowledge, the softer knowledge,

which cannot be recorded in the organization with them, when they leave ok.

For example; I have been working here for 5 to 7 years you know I understandor I build

connections outside the organization like with suppliers with customers with you know

other organizational entities. So, when I leave these connections are also lost for

the organization. So, people leaving at this level is a significant level of costs for

the organization, both financial cost and social costs. So, how to retain these employees?

So, first we need to understand why people at this level with this number of work experience

in these kind of organizations leave. In an IT company maybe attrition, employee quitting

the organization might be more in the first 2 years at the lower level.

So, in bigger manufacturing organizations people leave at the middle level5 to 7 years

of work experience. So, why people leave at this stage? Just think; is it because they

are not paid well is it because they do not like the organization they get bored? What

is the reason? One important reason is career growth, you

know at this level in large organizations especially manufacturing organizations which

are bottom heavy which means are many people at the bottom and very few people at the top,

when you are at a middle level you feel there are very less chances for you to grow to the

top ok. So, it is not just about money you cannot

retain them by saying ok will pay you more, it is also about you know the kind of recognition

you get when you go to the top you know the status you get when you go to the top ok.

So, this idea can be explained or this particular idea that people at this level are motivated

by these needs comes from the theory Maslow s Hierarchy of needs which says employees

are at different levels. Not just employee humans are at different levels and they get

satisfied by or they are motivated by different types of needs. So, initially people are driven

by job security or pay or things like that. At certain level people are driven by the

kind of work environment or friends they have, at a certain level people are driven by recognition

certain level people are driven by growth and things like that. So, maybe at middle

level when they spend 5 to 7 years they are driven by recognition ok. So, you understand

that using this theory of Maslow s Hierarchy of needs.

So, now, you can predict employee reactions or employee behaviour. So, let us say you

know that this particular employee has been working there for these many years at the

middle level. And you know that or you can anticipate that there are more chances this

person will feel stagnated and try to leave or you know maybe quit the organization. So,

you can predict vulnerable group or you know groups with high chances that they might leave.

So, what can you do? You can plan for effective interventions. so intervention is not necessarily

paying more. So, what can you do when people are driven by growth needs or recognition

needs? You cannot necessarily promote everyone to the top because the organization structure

may not allow so many people moving to the top. So, what can you do?

So, usually one thing organizations like this do is; they have job rotation kind of interventions,

which means instead of moving them vertically you can move them horizontally, send them

to newer department, give them newer responsibilities, help them a learn new areas, new skill sets

which are required for new functions and things like that. So, employees will feel that they

are they are in a continuous learning process it is not like they have stagnated ok.

So, if you can understand a simple theory or a very you know basic theory like Maslow's

Hierarchy of needs theory, it can be very useful to understand these kind of problems

in organizations, predict and intervene in the right way ok. So, there are many theories

like this which can be very useful and are application oriented. So, if you study organizational

behaviour it will help you understand or help you master these things.

So, like I said organizational behaviour has a lot of application in organizations especially

in the area of human resource management; so almost all organizations have this department

called human resource management department. So, role of human resource management department

is to select the right kind of people, train them properly, you know evaluate their performance

in a right way, reward them so that they are motivated and also help them have a better

quality of life in the work or helping employee welfare.

So, in all these functions of human resource management organizational behaviour as a discipline

can contribute to a larger extent. For example, selection; in selection the basic idea of

selection is finding out the right person for the right job. So, right being a right

person for the right job is not necessarily about the kind of skill set you have.

It is also about the kind of attitude one has, the kind of personality attribute or

the personality qualities of the employee all these things are very important in recruitment.

So, things like psychometry; measuring these qualities and trying to see how much of person

will fit into this particular job. I will give an example, let us say you are recruiting

for a marketing job ok. So, apart from knowledge in marketing or a

degree in marketing what else do you require or expect from a person who is going to work

in this marketing kind of a job; where you have to go out, sales kind of a job, you have

to go out, talk to people, persuade them, should be able to convincingly make the sales

pitch and things like that. You would like someone, a person who is very

extroverted; extroverted means someone who enjoys socializing likes to talk you know

likes tocommunicate. And also someone who has the capacity to negotiate or you know

will be able to influence others; convince; persuasiveness.

So, all these qualities you will look for, not just the knowledge in sales and marketing.

So, psychology or organizational behaviour helps you recruit people with these qualities

for this particular job. And also another important area in selection where organizational

behaviour can be very useful is biases in selection.

Especially in interviews there are many individual biases of the interviewers which will influence

their selection decision. Like stereotyping, you have certain assumptions about you know

these are the things which reflect a deeper quality. You know somebody speaks very good

English, you assume that this person is knowledgeable, somebody who has a certain body language you

assume that this person will be confident. So, these are some of the assumptions or biases

we make as interviewers. So, knowledge of organizational behaviour will help people

who are part of selection to overcome these biases.

Second important area where like I said organizational behaviour can help managers are performance

evaluation and performance management. So, what kind of criteria we can use to evaluate

performance. So, when you evaluate performance in workplace how will you define performance,

is it just measuring tangible things like observable numbers or is it other things like

leadership qualities or willingness to learn and things like that.

So, how do you measure these qualities when you evaluate an employee in workplace? And

also similarly evaluation biases; so if you are evaluating what kind of biases can happen

if you are a supervisor you are evaluating a subordinate, what kind of biases can happen.

One important bias or common bias evaluators or managers have when they evaluate subordinate

is halo effect. Halo effect means you look at two three qualities and then you generalize

you know the employee performance ok. So, for example, in the classroom when students

there are some students who will nod, who will show interest in the class; teacher may

assume these students will perform more when they correct their papers you will you know

match that face and think this person is a very interested student, you know committed

student; so unknowingly we give more marks. Similarly, in workplace also this can happen.

And the third area which is employee welfare in human resource management OB can contribute

to a very significant level more specifically in stress management. especially in recent

days, all these service jobs like IT or hospitality sector, there are lot of stress which these

you know employees undergo. So, organizational behaviour can helpemployees overcome stress

and avoid burnout ok. So, like I said application or where can we

apply organizational behavior. One, improving quality of work life; so when I say quality

of work life, it is not just people you know behaviour in work. So, if you remember in

one of those earlier videos on the brief description of this course I spoke about workspace and

workplace. So, what is the difference? Workplace is the

place where you work you know people around you, the physical infrastructure, the culture

of the organization and things like that. Work space is the area of work which means

work is not necessarily which you leave after you come back from your office or from your

workplace, you carry the influence of the work. So, we call it work life balance and

all those things. So, for example, you know the stress that your work will also influence

your family life or your personal life. Similarly, what happens in your family life

or personal life will also influence your work both positively and negatively ok. So,

understanding these dynamics will help managers come up with better interventions to make

this as a positive experience. So, by doing this we can improve employee performance in

long run ok. When employee performance is better in long

run; not necessarilytangible performance. Performances like organizational commitment,

performances like extra role performance which I mentioned earlier which is helping your

coworkers, loyalty towards the organization, things like that, in long run it will help

the organizational effectiveness. So, these kind of organizations which have

committed workforce, you know loyal workforce, happy workforce, will perform better in long

run. So, organizations which stay for very long period of time in a successful manner

are the ones which have these kind of employees. Not just high performing employees, but committed

and happy employees ok. So, these are the areas where OB can be applied

or understanding of organizational behaviour can be applied. So, I will stop here. In the

next chapter we are going to look at history of OB or what are the significant time periods

in the development of OB as a discipline. If you look at the last point, I have mentioned

about world wars or industrial psychology. Which means; during world war there is a significant

amount of improvement in understanding human behaviour in workplace or industrial psychology

as a discipline evolved a lot during world war.

It is very ironical you know something very negative like world war which helped us understand

or helped in the area of organizational behavior. I want you to think about why this would have

happened. You know just do a Google search or just think and try to you know come up

with some understanding of why world war would have contributed to developments in industrial

psychology. So, we will meet in the next lecture. And

meanwhile have a happy day and stay well. Bye.